- eXp Realty was a real-estate juggernaut that swelled to more than 80,000 agents based on a revenue-share plan that paid each staffer for bringing in new agents. But a short-seller tells Fortune he believes the company is a multi-level marketing operation—and three academics told Fortune they agree. eXp denies this and says its structure is an innovative way to reward successful brokers. Founder Glenn Sanford has stepped back from the spotlight after a pair of sexual misconduct lawsuits, reviewed by Fortune , alleged he knew women were being drugged and assaulted inside the company and did little to prevent it. eXp denies the allegations against its leadership and claims the alleged assaults by independent real estate agents were handled with seriousness once the accusers brought it to its attention.
eXp Realty founder Glenn Sanford built the largest independent real estate brokerage in the world, with about 83,000 agents, by promising to share the company’s revenue with his staff. But a decline in agents on his watch for the first time ever suggests the revenue-sharing model that put eXp Realty on the map might now be slowly eroding it from within, Fortune has learned after interviews with a former employee and a short seller, and after reviewing two lawsuits filed against the company.
